Hodges: cost focus already paying off, new view on modern technology

ANZ has moved to recognise the changing pace of modern technology by taking more of the cost of depreciating technology up front, acting chief financial officer Graham Hodges says.

Speaking on the release of the result, Hodges said the result demonstrated the bank has maintained a strong focus on reducing costs and restructuring was another element of the specified items in ANZ’s interim result.

"[The change in the application of accounting policy for technology] reflects a discipline we want to have across the business"
Graham Hodges, ANZ Acting CFO

“We’ve taken [a charge of] $A138 million for reducing costs in the business restructuring,” he said. “Some of which we’ve already done in the first half, around two thirds of which we’ve identified will have its full effect in the second half.” 

ANZ posted an interim cash profit of $A2.8 billion, a 24 per cent decline on the previous corresponding period, on the back of $A717 million cost for the specified items.

Those items also include the sale of the Esanda Dealer Finance portfolio, the carrying the value of some Asian partnerships and a restructuring provision.

“In today's environment a lot of the technology [the bank uses] has a much shorter [lifecycle],” Hodges told BlueNotes on video. “That [item] reflects a discipline we want to have across the business where we spend more in today results and not put it on the slate to be an expense in the future.”

Hodges also touched on the bank’s partnerships and the sale of Esanda. Watch the video above to find out more.

Andrew Cornell is Managing Editor at BlueNotes

The views and opinions expressed in this communication are those of the author and may not necessarily state or reflect those of ANZ.

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